Forex Fundamentals·Reading Forex Quotes & Orders
Order Types
Not Every Trade Needs to Be Instant
A market order executes immediately at the current price. But sometimes you want to enter at a specific price that the market hasn't reached yet. That's where pending orders come in. Professional traders use pending orders extensively — they set their levels, walk away, and let the market come to them. This removes emotion from the entry process and allows for more disciplined trading.
Definition
Market Order
An order to buy or sell immediately at the best available price. You click 'Buy' and you're in the trade right now. Fast, but you accept whatever price the market gives you. In volatile conditions, you might get 'slipped' to a worse price than displayed.
Definition
Limit Order
An order to buy below the current price or sell above it. 'I want to buy EUR/USD, but only if it drops to 1.1000.' The order sits and waits until your price is hit — or expires if it never is. Limit orders give you a better entry price but risk not being filled.
Definition
Stop Order (Stop Entry)
An order to buy above the current price or sell below it. Used for breakout strategies: 'If EUR/USD breaks above 1.1100, buy.' The order triggers only when price reaches your stop level. The logic is that a breakout above resistance confirms bullish momentum.
Definition
Stop-Limit Order
A combination: the stop price activates the order, but it only fills at the limit price or better. Gives you more control but risks not getting filled if the market moves too fast past your limit. Best used in liquid markets where gaps are rare.
Definition
Stop Loss (SL)
An exit order that automatically closes your position at a predetermined loss level. If you buy EUR/USD at 1.1050 and set SL at 1.1000, your position closes automatically if price drops to 1.1000, limiting your loss to 50 pips. Every trade must have a stop loss.
Definition
Take Profit (TP)
An exit order that automatically closes your position at a predetermined profit level. If you buy EUR/USD at 1.1050 and set TP at 1.1150, your position closes automatically when price reaches 1.1150, locking in 100 pips of profit.
Definition
Trailing Stop
A dynamic stop loss that moves with the price in your favor. If you set a 30-pip trailing stop and the price moves 50 pips in your favor, your stop loss has moved up 50 pips too — locking in at least 20 pips of profit. If price reverses 30 pips, the stop triggers.
Definition
Slippage
The difference between the expected fill price and the actual fill price. In fast markets (during NFP release, for example), a market order to buy at 1.1050 might fill at 1.1053 — that's 3 pips of slippage. Slippage can be positive or negative.
When to Use Each Order Type
| Order Type | Best For | Risk | Example |
|---|---|---|---|
| Market | Getting in right now | Slippage in fast markets | News just dropped, you want in immediately |
| Buy Limit | Buying dips at support | May never fill | EUR/USD at 1.1050, you want to buy at 1.1000 support |
| Sell Limit | Selling rallies at resistance | May never fill | GBP/USD at 1.2700, you want to sell at 1.2750 resistance |
| Buy Stop | Breakout above resistance | False breakouts | Buy if EUR/USD breaks above 1.1100 resistance |
| Sell Stop | Breakdown below support | False breakdowns | Sell if GBP/USD breaks below 1.2600 support |
| Stop-Limit | Precise breakout entries | No fill if price gaps past | Buy above 1.1100 but only up to 1.1110 |
| Trailing Stop | Riding trends, protecting profits | Getting stopped out by normal noise | Set 40-pip trail on a trending EUR/USD long |
MARKET ORDER
Fill now
Executes immediately at the next available price. Slippage in fast markets. Use when timing matters more than price precision.
instant · slippage risk
LIMIT ORDER
Fill at or better
Sits in the book waiting for price to come to you. Buy limits below market, sell limits above. No slippage by definition.
price · waits for fill
STOP ORDER
Trigger then market
Pending until price crosses your trigger, then becomes a market order. Used for breakout entries (buy stops above resistance) and exits (stop-loss).
trigger · then market fill
Visual Guide: Limit vs Stop Orders
The difference between limit and stop orders confuses many beginners. Here's the simplest way to remember: Limit orders expect a reversal (buy low, sell high). Stop orders expect continuation (buy higher on a breakout, sell lower on a breakdown).
A
Limit Orders (Expect Reversal)
- Buy Limit: placed BELOW current price
- Sell Limit: placed ABOVE current price
- Logic: 'Price will come to me, then reverse'
- Used at: support levels, Fibonacci retracements, demand zones
- Risk: price may never reach your level
- Benefit: better entry price if filled
B
Stop Orders (Expect Continuation)
- Buy Stop: placed ABOVE current price
- Sell Stop: placed BELOW current price
- Logic: 'If price breaks this level, momentum continues'
- Used at: resistance breakouts, support breakdowns, trend continuations
- Risk: false breakouts can trap you
- Benefit: confirms momentum before you enter
Stop Loss vs Stop Entry — Don't confuse them!
A stop entry order gets you INTO a trade when price reaches a level. A stop loss gets you OUT of a trade to limit your loss. They use similar mechanics but serve opposite purposes. A stop loss is defensive (protecting capital); a stop entry is offensive (catching breakouts).
Placing Orders on Markitel
Placing a Limit Order on Markitel
- 1
Find the pair
Navigate to the asset you want to trade from the screener or signals feed.
- 2
Open the order panel
Tap 'Trade' on the asset detail page to open the order form.
- 3
Select Limit
Switch the order type from 'Market' to 'Limit' in the dropdown.
- 4
Set your price
Enter the price where you want your order to trigger. For a buy limit, this must be below the current ask price.
- 5
Set stop loss
Always set your stop loss. Calculate it based on your risk tolerance and the nearest support/resistance level.
- 6
Set take profit
Set your target price. Aim for at least a 1:2 risk-to-reward ratio (if SL is 30 pips, TP should be 60+ pips).
- 7
Set quantity & confirm
Choose your lot size using the position sizing formula (covered in lesson 1.2.3), review all levels, then confirm the order.
Order expiry
Pending orders can be set to expire at a specific time (Good Till Date) or remain active until cancelled (Good Till Cancelled / GTC). If you set a buy limit for an NFP trade but NFP has passed, cancel the order — the context has changed. Stale pending orders are a common source of unexpected fills.
Common Order Mistakes
| Mistake | Consequence | Prevention |
|---|---|---|
| No stop loss | Unlimited potential loss | Set SL before confirming every trade — no exceptions |
| Stop loss too tight | Constantly stopped out by normal price noise | Give your stop room — use ATR or recent swing lows/highs |
| Market order during news | Major slippage, filled 10+ pips from intended price | Use limit orders during volatile events, or wait for the dust to settle |
| Forgetting pending orders | Unexpected fill hours or days later | Review open orders daily; cancel outdated ones |
| Moving stop loss further away | Small loss becomes catastrophic | Never move SL away from price — only toward it (trailing) |
Knowledge check
You want to buy EUR/USD only if it drops to 1.1000 (currently at 1.1050). Which order type should you use?
Knowledge check
What is slippage?
Knowledge check
GBP/USD is at 1.2700. You want to sell only if it drops below 1.2650 support. Which order do you use?